On March 24, the U.S. House of Representatives passed the Small Business and Infrastructure Jobs Tax Act (H.R. 4849), which eliminates the state volume cap on water and wastewater projects funded with private activity bonds (PABs).

If signed into law, the PAB language in HR 4849 would support jobs, leverage private-sector dollars and improve the nation's water infrastructure, according to the National Utility Contractors Association. The legislation would also expand the Build America Bonds program, which funds water and wastewater projects across the country. 

“Passage of this legislation is a big milestone in NUCA's efforts to expand America's struggling water and wastewater infrastructure markets,” said Bill Hillman, NUCA CEO.

“Recognizing the lack of federal dollars available for water and sewer improvements, the need for private sector investment has become abundantly clear. This bill will take great strides in enhancing opportunities for such investment.”

NUCA estimates that lifting water and wastewater infrastructure from the state volume cap on PABs could generate as much as $5 billion annually in incremental private capital at a very low cost to the government.